What is a coinsurance penalty?

Coinsurance penalties, also known as coinsurance, are a form of cost sharing between you and your health insurance provider. When you use services covered by your health insurance plan, you are responsible for paying a percentage of the cost, and your insurance company is responsible for covering the remaining amount. In Arizona, coinsurance penalties are generally set at a percentage of the total cost of the service, ranging from zero to thirty percent. For example, if an office visit costs $100 and a person’s coinsurance penalty is 20%, then the patient would pay $20 and the insurance company would pay the remaining $80. Coinsurance penalties are calculated based on the level of coverage you have on your plan. Generally, the higher the premium you pay for your plan, the lower the coinsurance penalty will be.

Related FAQs

What is an insurance premium tax credit?
What is a capitated plan?
What is a flexible spending account (FSA)?
What is an out-of-pocket minimum?
What is a healthcare provider network?
What is a qualified health plan (QHP)?
What is a Medicare Part D prescription drug plan?
What is a health insurance deductible?
What is a Medicare Advantage plan?
What is an out-of-network provider?

What is a coinsurance penalty?

Related FAQs

Related Blog Posts